Kier Group has returned to profit, despite a £10M operating loss in its construction division.
Pretax profits for the year to 30 June were up to £26M from a loss of £35M in 2016, helped by the sale of Mouchel Consulting to WSP in February for £75M.
Revenue was up 3% to £4.1bn while its order book increased to £9.5bn compared to £8.9bn last year, with building, infrastructure and housing sectors representing 90% of Kier’s revenue and profit. In July Kier bought utilities engineering firm McNichols, which provides services for clients such as UK Power Networks and Network Rail.
However Kier’s construction arm deepened its losses to £10.1M from £3.2M last year, despite a £1bn growth in its order book to £4.2bn and £3bn in new contracts.
The group secured major contracts in its infrastructure division including £1.5bn of JV roles with HS2 Ltd and a £38.5M contract covering work on the A13, while it continues to work on Hinkley Point C, Crossrail and the Mersey Gateway scheme.
”Our underlying performance for the year was good. Having simplified our portfolio, the Group is more focused and able to pursue its growth ambitions in our three core markets; building, infrastructure and housing, which now represent 90% of the Group’s revenue and profit,” said Kier Group chief executive Haydn Mursell.
“We continue to invest in the business to improve our operational efficiency, providing a robust platform on which to take advantage of the strong longterm fundamentals in these core markets.”